Teva Q1 2026: AUSTEDO hits $578m as brands offset generics slide
Teva Pharmaceutical Industries reported first-quarter 2026 revenues of $3.98 billion, up 2% in US dollar terms year-on-year, as strong growth across its three key innovative brands more than compensated for a steep decline in its generics business driven by lenalidomide erosion.
AUSTEDO (deutetrabenazine), indicated for tardive dyskinesia and Huntington's chorea, generated global revenues of $578 million in the quarter — a 41% increase in local currency terms — and remains the primary engine of Teva's portfolio transformation. AJOVY (fremanezumab), its anti-CGRP migraine treatment, posted $196 million globally, up 35% in local currency, while UZEDY (risperidone extended-release injectable) reached $63 million, a 62% rise. The three brands combined for $838 million in Q1 revenues and are expected to comprise roughly 21% of Teva's total annual revenues on the company's current 2026 outlook.
Generics drag and biosimilar bridge
Generic revenues fell 16% in local currency terms, principally because of intensified competition in the US market for lenalidomide capsules — Teva's generic version of Celgene's Revlimid — where multiple entrants have compressed pricing and volumes. The divestment of Teva's Japan business venture in March 2025 added further drag to the International Markets segment, which declined 19% in local currency.
Biosimilars are, however, emerging as a meaningful offset. PONLIMSI (denosumab-adet), Teva's biosimilar to Amgen's Prolia, received full FDA approval in March 2026, and the company's proposed biosimilar to Xolair (omalizumab) has been accepted for review by both the FDA and EMA. Teva reiterated its target of $800 million in biosimilar revenues by 2027.
Non-GAAP diluted EPS came in at $0.53 for the quarter, fractionally ahead of the $0.52 recorded a year earlier. Adjusted EBITDA was $1.055 billion, a 1% increase. Free cash flow improved to $188 million from $107 million in Q1 2025.
Pipeline and the Emalex deal
Beyond the marketed portfolio, Teva's late-stage pipeline drew attention. Phase 2b maintenance data for duvakitug, its anti-TL1A antibody targeting ulcerative colitis and Crohn's disease, demonstrated what the company described as durable efficacy over 44 weeks, and Phase 3 enrolment is on track. Separately, the FDA accepted Teva's NDA for once-monthly olanzapine long-acting injectable in February 2026, with a potential launch targeted for Q4 2026 subject to regulatory approval.
The quarter was also framed by Teva's agreement to acquire Emalex Biosciences, whose lead asset ecopipam has completed Phase 3 development for paediatric Tourette syndrome. The deal, expected to close in Q3 2026, introduces an NDA-ready neuroscience asset and is flagged as a key component of the company's "Pivot to Growth" strategy.
The strategic context for that pivot is worth noting. Large diversified generics-and-specialty players — Teva alongside peers such as Viatris and Hikma — face a structural tension: generics volumes remain under persistent pricing pressure from PBM consolidation and government pricing initiatives, while the cost of building or acquiring innovative brands is rising. Teva's ability to sustain 38% compound annual growth across AUSTEDO, AJOVY and UZEDY will be tested as those products mature and attract biosimilar or generic competition of their own; AUSTEDO XR's Orange Book patent protection extends to 2041, providing some runway, but investor scrutiny of the duvakitug Phase 3 readout and the olanzapine LAI launch will be intense.
For 2026, Teva maintained its revenue guidance of $16.4–$16.8 billion, though the Emalex acquisition is expected to reduce non-GAAP diluted EPS by $0.66 to a range of $1.91–$2.11, largely reflecting an anticipated $700 million IPR&D charge.